Marketplace Plan Choice: How Important is Price? An Analysis of Experiences in Five States

Research Report

Marketplace Plan Choice: How Important is Price? An Analysis of Experiences in Five States

Abstract

Anecdotal evidence has suggested that Marketplace consumers are extremely sensitive to premium price when purchasing insurance. We have analyzed available insurer-level enrollment data from the five state-based Marketplaces (California, Rhode Island, New York, Maryland, and Connecticut) which have released the relevant data. We find that consumers are generally sensitive to premium price, and low-cost insurers tend to enroll the largest share. However, many enrollees have selected higher priced options, indicating there are other motivations for selecting a particular insurer, including brand name recognition, prior satisfaction, or perceived quality differences.

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